Debt information
The Group’s finance policy comprises a framework of guidelines and principles governing the management of financial risks and finance operations in general. The Group’s financial risk management is centralized to capitalize on economies of scale and synergy effects, and to minimize operational risks.
Key figures 2021
Net debt/EBITA: 1.7
Average interest maturity: 3.5 years
Fixed loans: 97%
Floating loans: 3%
Debt sources of financing
Swedish Match policy is that the average interest maturity should be less than 5 years. The Group´s objective for interest rate fixing is to achieve an even and low cost of interest.
Maturity profile of interest bearing liabilities
| Fixed | Float | |
|---|---|---|
| 2022 | 680 | 0 |
| 2023 | 1,686 | 250 |
| 2024 | 2,860 | 0 |
| 2025 | 2,971 | 0 |
| 2026 | 2,195 | 0 |
| 2027 | 3,173 | 0 |
| 2028 | 328 | 0 |
| 2029 | 300 |
As of March 31, 2022
Swedish Match has had a long-term rating from Standard & Poor's since 1997 and Moody's Investor Service since 1999.
Swedish Match current ratings
| Standard & Poor's | Moody's | |
|---|---|---|
| Short-term rating: | A-2 | |
| Long-term rating: | BBB | Baa2 |
| Outlook: | Stable | Stable |
Net debt/EBITA
The Board of Directors has determined that the Group will strive to maintain a net debt that does not exceed 3 times EBITA. The actual level of net debt will be assessed against: anticipated future profitability and cash flow, investment and expansion plans, acquisition opportunities, and development of interest rates and credit markets.
| Net debt /EBITA | |
|---|---|
| 6/30/2017 | 2.2 |
| 9/30/2017 | 2.4 |
| 12/31/2017 | 1.9 |
| 3/31/2018 | 1.8 |
| 6/30/2018 | 2.4 |
| 9/30/2018 | 2.3 |
| 12/31/2018 | 2.2 |
| 3/31/2019 | 2.2 |
| 6/30/2019 | 2.3 |
| 9/30/2019 | 2.2 |
| 12/31/2019 | 2.1 |
| 3/31/2020 | 2.0 |
| 6/30/2020 | 2.1 |
| 9/30/2020 | 2.0 |
| 12/31/2020 | 2.0 |
| 3/31/2021 | 1.6 |
| 6/30/2021 | 1.9 |
| 9/30/2021 | 1.8 |
| 12/31/2021 | 1.7 |
| 3/31/2022 | 1.6 |
